Court Invalidates Elon Musk's $56 Billion Tesla Compensation Package

A judge in Delaware has invalidated a $56 billion pay package awarded to Elon Musk by electric car manufacturer Tesla in 2018. The lawsuit against the deal was brought by a shareholder who argued that it constituted excessive payment. Judge Kathaleen McCormick ruled that the approval of the compensation plan by Tesla's board was highly flawed. Elon Musk responded to the ruling with a post on the social media platform X, formerly known as Twitter, advising against incorporating companies in Delaware. In her extensive ruling, Judge McCormick labeled the compensation as an incomprehensible amount that wasn't fair to shareholders. This pay package was the largest ever in corporate history. The decision can be appealed to the Delaware Supreme Court. Following this development, Tesla's shares have fallen by over 3% in after-hours trading and have experienced a more than 20% decline in value this year.